CHAPTER1  Stochastic Volatility and Local Volatility    1

CHAPTER2  The Heston  Model    15

CHAPTER3    The Implied Volatility Surface    25

CHAPTER4    The Heston-Nandi Model    43

CHAPTER5    Adding Jumps    50

 CHAPTER6      Modeling Default Risk    74

CHAPTER7    Volatility Surface Asymptotics    87

CHAPTER8     Dynamics of the Volatility Surface    101

CHAPTER9      Barrier Options    107

CHAPTER10     Exotic Cliquets    122

CHAPTER11     Volatility Derivatives    133